Website builder Wix targets $1.5 bn revenue despite cutting 15% jobs

Wix, a website builder for digital presence, said its revenue is expected to grow 9-11 percent in 2023 to $1,510-$1,535 million.
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“Our focus in 2023 will continue to be on driving cost efficiencies across the business while innovating industry-first products for our users. As a result of the $50 million of incremental cost savings expected in 2023 (~$65 million on an annualized basis), we anticipate profitability to accelerate compared to the three-year plan outlined at our Analyst Day in May 2022,” Wix.com said.

Wix has reported 9 percent increase in revenue at $1.39 billion with net loss of $424.9 million in 2022.

Wix has revealed it slashed approximately 370 jobs to employees last week, or nearly 7 percent of its total workforce. Wix said this job reduction primarily occurred across Customer Care team.

This headcount reduction, in addition to the efficiency efforts and savings implemented in 2022, will bring headcount from nearly 6,100 at the end of Q1 2022 to roughly 5,200 at the end of this process, reflecting a 15 percent decrease.

Wix reduced investment in acquisition marketing in the quarter by nearly 50 percent compared to the previous year.

Wix plans to shift dollars to invest more into brand in order to drive growth. Cost on brand marketing will be roughly 3-4 percent of revenue in 2H23. Wix still expects lower sales and marketing expenses in 2023 compared to 2022.

Wix added 96,000 (+2 percent) premium subscriptions in 2022 to reach nearly 6.1 million as of December 31, 2022.

Wix said registered users as of December 31, 2022 were 243 million (+10 percent).

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